The Reserve Bank of India (RBI) has issued consolidated directions for domestic money transfers, retaining existing transaction limits while strengthening safeguards for cash-based remittances.
The revised
framework brings earlier instructions under a single set of rules covering banks, payment system operators and other authorised participants.
As per a report by Business Standard, walk-in customers can transfer up to ₹50,000 in cash through the National Electronic Funds Transfer (NEFT) system at bank branches, even without holding an account at the bank concerned.
Retains Cash Transfer Limits For Customers
Banks may also facilitate cash remittances through business correspondents (BCs), automated teller machines (ATMs) and other permitted channels.
Such transfers are limited to ₹5,000 per transaction, with a monthly ceiling of ₹25,000 per remitter.
For beneficiaries without bank accounts, banks can arrange cash payouts from customers' accounts through authorised channels.
These transactions are capped at ₹10,000 each, subject to a monthly limit of ₹25,000 per beneficiary.
The RBI clarified that these limits were already part of the existing framework and remain unchanged.
Card-to-card transfers are excluded and will continue to follow their respective regulatory guidelines.
Stricter Authentication And Monitoring Requirements Introduced
The directions require remitters to register using verified mobile numbers and self-certified officially valid documents under the RBI's Know Your Customer Directions, 2025.
Every transaction must undergo an additional factor of authentication.
Banks and BCs must include remitter details in Immediate Payment Service (IMPS) or NEFT messages and identify cash-based transfers separately.
Banks and non-bank entities must introduce transaction-frequency checks, customer alerts and monitoring systems to detect unusual credit activity.
Suspicious transactions must be investigated and reported to the appropriate authorities.
Transfers should be completed in real time or near real time, with inter-bank settlements conducted through RBI-approved payment systems.
The directions cover scheduled commercial banks, regional rural banks, co-operative banks and authorised payment system participants.
Institutions may levy reasonable service charges and establish grievance redressal mechanisms.
Customer complaints fall under the RBI-Integrated Ombudsman Scheme, 2026.
The consolidated directions replace earlier RBI circulars issued on Oct 5, 2011, and July 24, 2024.
